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Swot Analysis of Reliance Fresh

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SWOT ANALYSIS OF RELIANCE FRESH

STRENGTHS-

 Reliance is the first to enter the unorganized sector of vegetables and fruits
according to them it's intention is to have 100% farm fresh foods in their
retail stores.
 Over 60% of the floor space has been dedicated to fresh fruits and
vegetables.
 Reliance does not contract framing which is beneficial for them.
 Reliance fresh has a network of 1600 channels in the villages from where
they directly purchase the vegetables and fruits.
 Huge promotional activities are done there to insure they get a larger footfall
 Ambience of Reliance fresh is not like the hypermarket in west which
follows a liner layout. They give a "no hassle " shopping experience. It gives
a traditional bazaar like environment where the Indians feel more
comfortable.
 The customers trust retail chains with quality of product. The reliance
products do not have adulteration. The quality is not assured in the kirana
store.

WEAKNESS-

 There is poor inventory control and is not properly managed by the staff.
 The staff needs to be more qualified and more aware about the products
available in the store.
 There is no parking area provided by reliance fresh for customers to park
their vehicles.
 Staff takes more time for billing
 Stores unable to meet the growing consumer demand. General perception of
customers.
 Depend on distribution channel for brands for FMCG products.
 Lack of strong supply chain like other big players
OPPORTUNITIES

 Reliance wants to build a high profitability business and food perhaps the
best venture to start that is because the Indian food supply chain is grossly
inefficient
 The supply chain already has been back by few hundreds of farmers the
number is estimated to touch million in next 5 years. The main aim of
Reliance is to eliminate the intermediaries in the sector and reduce the cost
 Early entry in the retail market .
 Organized retail
 Global expansion
 In- store experience improvements.

THREATS –

 This model engineered to clock a faster turnover of inventory. Reliance


expects consumers to visit the store at least twice a week for their top up
groceries. Each store will have an expectation of 50 to 60 lakhs.
 Unlike global retailers who operate in thin margins , reliance fresh is looking
at a high margin business model
 They have also a threat from existing supermarkets which provide all the
services to its customers. For example Big Bazaar
 Unorganized retail
 Bad economic conditions
 Lowering margins

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